Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidio's most recent year of operations follows: ODD Number of

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Consider the following information for Presidio Inc.'s most recent year of operations. Additional information for Presidio's most recent year of operations follows: ODD Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($285,600 + 2,400 units) Total variable selling expenses ($13 per unit sold) Total fixed general and administrative expenses . in com Na 100 DOO 00 un Required: 2. Complete a full absorption costing income statement and a variable costing income statement for Presidio. Assume there was no beginning inventory. X Answer is not complete. Presidio, Inc. Full Absorption Income Statement $ 1,073,000 Sales Less: Cost of Goods Sold Gross Margin Less: Selling Expense Net Operating Income Answer is complete and correct. Presidio, Inc. Contribution Margin Income Statement Sales revenue $ 1,073,000 Less: Variable Manufacturing Costs 232.000 Variable Selling Expenses 18,850 822,150 285,600 Contribution margin Less: Fixed Manufacturing Costs Fixed General and Administrative Expense 85,000 Net Operating Income 451,550 3. Compute the difference in profit between full absorption costing and variable costing. Answer is complete and correct. Difference in Profit $ 113,050

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: John Hoggett, Lew Edwards, Evelyn Hogg, John Medlin, Matthew Tilling

8th Edition

1742466362, 978-1742466361

More Books

Students also viewed these Accounting questions

Question

Identify ways that country culture influences global business.

Answered: 1 week ago

Question

Define human resource ethics.

Answered: 1 week ago

Question

Describe the human resource management profession.

Answered: 1 week ago